Shop name Redbean in Zhongsan Street in Rugao with Redbean in Chinese script. Notice the models were Chinese but the signs were in English, in the heart of China.

5/25/2016

BSI – Would Singapore teach the Americans how to run a clean financial system?

‘This will
send a chilling message to bankers here, pushing them to ensure robust anti
money laundering and counter terrorism financing strategies are at play asotherwise the risk of losing their regulatory
licences is now more pronounced. – Nizam Ismail, Head of Regulatory practices
in Singapore law firm RHTLaw Taylor Wessing.

This
statement came after the shocking closing of BSI by the MAS and the revoking of
its banking licence for its part in the 1MDB case. It was also fined for
$13.3m.Several of its top executives
including the CEO are now under investigation while one executive is facing
several charges. Some have resigned and some suspended.

Could
Singapore do better or just do what the Americans have been doing against rogue
banks, not rogue bankers? The Americans have been finding the banks hundreds of
billions of dollars for money laundering and improper criminal business
activities. And the US govt is pocketing the money happily, hundreds of
billions after so many banks were caught with their pants down. And the CEOs
and top management of fraudulent banks are also happily continuing with their
business, continue to do the same, not guilty of any crime and not having to
resign or pay any fines. The heavy fines are paid by the banks, ie
shareholders’ money.

Singapore in
this case did a few things different. Find BSI a miserable $13.3m but closed
the bank. Also one executive is facing charges, ok this is the same in the USA,
junior executives would be charged. No big fish involved. Would Singapore go further to charge the CEO
and top executives? They must have known what was going on and approved the
dealings. No?

Now, how
would this affect this island’s financial system and reputation as a squeaky
clean country?According to a veteran
market watcher Mano Sabmani, ‘the problem at BSI are not likely to be
contagious…”It is probably the main rotten egg and the entire basket is not necessarily
contaminated”.’ I like his confidence in the system. This is like there are
negligible foreigners here working using fake degrees or forged credentials
because so far only one has been exposed and accepted as no fault, just a
slight error in judgement. And the few hundreds caught, small matters. With 2
millions working here, a few hundred is probably all the problem there is. The
rest are clean.

So this
thing is not contagious. The rest of the banks and bankers would not be caught
for such vices. The system is sound and intact, like there are no more foreigners
working here under fake degrees and forged credentials. Not to worry. If there
is anything different, maybe the CEO and top executives in BSI may not get away
too easily in this case. Other than that, all is fine. Singapore is a fine
city. How can Singapore’s reputation be dragged down into the mud as one of
those money laundering countries? This is only one rotten case.

7 comments:

Actually hor, if you notice, Singapore is closing down BSI at about the same time as the Swiss AG Office orders criminal proceedings against the parent BSI SA Bank.

Is there any correlation between the actions?

And yes, why didn't Singapore go further to charge the CEO and top executives? Why only charge an executive or 2 down the line? Aren't the CEO and top executives having even greater responsibility for the mess and crime? Why MAS must refer them to the public prosecuter first? Don't the CAD able to decide on that?

BSI is going get its arse reamed by the Swiss banking regulators. Self interest here is very much at play. Switzerland has often been accused in being complicit in aiding and abetting money launderers and criminals with big money gained form criminal activity.

BSI will probably end up the "scape goat" and the poster child for Switzerland's new image in banking and change its image from "bad guys" to the new, morally-upright "good guys".

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